Gramercy grabs opportunity in China’s property bonds

Distressed debt specialist Gramercy Funds scents an “opportunity for experienced credit investors” in the cash-strapped Chinese real estate sector and has been loading up on property company bonds. Robert Koenigsberger, founder of the $5.5bn (£4.5bn) firm, made a fortune from Russian debt in the late 1990s and has played a big role in restructuring Argentine government bonds. In China, the value of property company bonds has plummeted since property developer Evergrande began missing payments last year. From zero exposure to the sector before Evergrande, Gramercy has built up to $200m in corporate bonds and expects to buy more. “Around 10 of the [companies] that we’re focused on definitely trade below an inherent value that we think that we can achieve by being a part of catalysing a restructuring in a reasonable period of time,” Koenigsberger said. “It reminds me of the ‘good old days’ of emerging markets… when it was more of a fledgling asset class,” he added. The FT (£)